<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 4
Portfolio of Investments......................... 5
Statement of Assets and Liabilities.............. 8
Statement of Operations.......................... 9
Statement of Changes in Net Assets............... 10
Financial Highlights............................. 11
Notes to Financial Statements.................... 12
</TABLE>
VTF SAR 6/96
<PAGE> 2
LETTER TO SHAREHOLDERS
May 15, 1996
Dear Shareholder,
While interest rates drifted
downward during the fourth quarter of
last year, such was not the case in the
first quarter of 1996. Early in the
quarter, municipal bond prices
demonstrated increased volatility in [PHOTO]
conjunction with February's economic
announcements, which revealed a revival
in economic growth, impressive
employment levels, and moderate
inflation. This positive economic DENNIS J. MCDONNELL AND DON G. POWELL
environment, however, did not translate
into positive movement for the bond markets. Instead, the markets became wary,
because inflation often accompanies economic growth.
Other factors influencing the municipal bond market early in the year
included:
- Intense weather conditions, which hindered distribution and manufacturing,
were experienced by much of the United States and affected certain
municipal bond sectors.
- The expectation that a federal budget agreement was forthcoming helped
bolster municipal bonds, especially at the longer end of the spectrum.
- The proposal of tax reform--and the threat of municipal bonds having
diminished tax-exempt status--continued to dampen demand for municipals,
resulting in lower bond prices.
We believe the beginning of 1996 reflected the market's reaction to the
possibility of a return to long-term economic growth. This, coupled with
continued low inflationary conditions, has served to put the Federal Reserve
Board in a neutral policy mode, bringing relative calm to the market--although
currently at higher interest rate levels.
PERFORMANCE SUMMARY
The Van Kampen American Capital Trust for Investment Grade Florida
Municipals' (ticker symbol VTF) common stock price was up 7 percent during the
six-month period, closing at $16.25, while the municipal bond market was down 4
percent for the same period, according to the Bond Buyer's 40 Municipal Bond
Index.
For the six months ended April 30, 1996, the Trust achieved a total return
of 9.77 percent(1), based on market price. Longer term, the Trust achieved a
one-year total return of 18.16 percent(1), based on market price for the period
ended April 30, 1996, including reinvestment of dividends.
Continued on page two
1
<PAGE> 3
As a result of the Trust's improved earnings, the Trust's Board of Trustees
approved a slight increase in its monthly dividend from $0.0800 to $0.0825 per
common share which was effective March 1, 1996 and first payable March 31, 1996.
Many closed-end municipal bond funds are currently offering higher after-tax
yields than taxable income alternatives, and your Trust is no exception. Based
on the closing common stock price on April 30, 1996, the Trust for Investment
Grade Florida Municipals had a tax-exempt distribution rate of 6.09 percent(3).
In other words, Florida residents in the 36 percent combined marginal income tax
bracket would have to earn a yield of 9.52 percent(4) on a taxable investment to
equal your Trust's tax-exempt distribution rate.
MARKET OUTLOOK
The economy rebounded in the first quarter of 1996, despite poor weather in
the East and the remnants of a slow fourth quarter of 1995, which was hindered
by weak construction activity, two government shutdowns, and a strike at Boeing.
We believe the momentum of the first quarter can carry into the second, due in
part to renewed auto production in the aftermath of the General Motors strike
and an end to the budget stalemate between the White House and Congress. We
expect a modest slowdown in the summer months, as higher interest rates could
slow activity in interest-sensitive sectors of the economy, such as housing.
Top 5 Portfolio Holdings by Industry as of April 30, 1996
Public Education.................. 21.5%
Health Care....................... 18.8%
Retail Electric/Gas/Telephone..... 13.1%
Water and Sewer................... 11.9%
General Purpose................... 11.6%
The Fed's protracted period of easing, and relatively neutral stance, favors
the growth we are currently experiencing. Given the strong employment situation
and commodity price increases, we think the Fed will await further economic
evidence before adjusting interest rates again--probably summertime at the
earliest. So far, guides such as the Consumer Price Index continue to indicate
modest levels of inflation. More importantly, we continue to see few signs of
emerging inflation in either unit labor costs, hourly earnings or the employment
cost index.
- --------------------------------------------------------------------------------
INVESTMENT TERM: REVENUE BONDS
Revenue bonds are one of the three most common types of municipal bonds--the
other two are general obligation bonds and municipal notes. Revenue bonds
are issued to finance income-generating projects such as turnpikes, toll
bridges and airports. The revenues these projects bring in are used to pay
interest and principal to bondholders.
- --------------------------------------------------------------------------------
Continued on page three
2
<PAGE> 4
Finally, as the November elections approach, the debate on tax reform may
grow. We believe the outcome in the long run will be positive, or at worst
neutral, for municipal bonds. That's good news for the market, which was
concerned that flat tax proposals could threaten the tax-exempt status of
municipal bonds. While the debate may not be over and legislation may be
forthcoming, the market should be more confident.
Portfolio Composition by Credit Quality
as of April 30, 1996
<TABLE>
<S> <C>
AAA........... 78.0%
AA............ 17.8%
A............. 2.2%
BBB........... 2.0%
</TABLE>
BASED UPON CREDIT QUALITY RATINGS ISSUED BY STANDARD & POOR'S.
FOR SECURITIES NOT RATED BY STANDARD & POOR'S, THE MOODY'S RATING IS USED.
Indeed, we expect investor demand for municipal securities to exceed supply,
which should add price stability to the general market. And with municipal bond
yields currently at attractive levels relative to Treasuries, investor demand
for tax-exempt securities should increase.
In summary, our view of the general municipal market is positive. From the
decreasing likelihood of tax reform in the near term to specific market
conditions, we believe the market is on solid ground. With our dedication to
comprehensive research and long-term investment perspective, we believe your
Trust is in a position to benefit in the coming months.
Sincerely,
DON G. POWELL
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
DENNIS J. McDONNELL
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
3
<PAGE> 5
PERFORMANCE RESULTS FOR THE PERIOD ENDED APRIL 30, 1996
VAN KAMPEN AMERICAN CAPITAL TRUST FOR INVESTMENT GRADE
FLORIDA MUNICIPALS
(NYSE TICKER SYMBOL--VTF)
<TABLE>
<CAPTION>
COMMON SHARE TOTAL RETURNS
<S> <C>
Six-month total return based on market price(1)........... 9.77%
Six-month total return based on NAV(2).................... .78%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3)................................................ 6.09%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)................................... 9.52%
SHARE VALUATIONS
Net asset value........................................... $ 16.90
Closing common stock price................................ $16.250
Six-month high common stock price (04/03/96).............. $16.750
Six-month low common stock price (11/17/95)............... $15.250
Preferred share rate(5)................................... 3.499%
</TABLE>
(1)Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions for
the period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common stock price at the end of the period
indicated.
(2)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3)Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4)The taxable-equivalent distribution rate is calculated assuming a 36% federal
income tax bracket.
(5)See "Notes to Financial Statements" footnote #4, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
4
<PAGE> 6
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS
FLORIDA 95.6%
$ 2,250 Alachua Cnty, FL Hlth Fac Auth Hlth Fac Rev
Santa Fe Hlthcare Fac (Prerefunded @
11/15/00)....................................... 7.600% 11/15/13 $ 2,570,625
1,000 Alachua Cnty, FL Hlth Fac Auth Hlth Fac Rev
Shands Hosp at the Univ of FL (MBIA Insd)....... 6.000 12/01/11 1,012,390
1,000 Alachua Cnty, FL Hlth Fac Auth Hlth Fac Rev
Shands Hosp at the Univ of FL (MBIA Insd)....... 5.750 12/01/15 975,290
1,000 Bay Cnty, FL Sch Brd Ctfs Partn (AMBAC Insd).... 6.750 07/01/12 1,084,110
3,000 Brevard Cnty, FL Hlth Fac Auth Wuesthoff Mem
Hosp Ser B Rfdg (MBIA Insd)..................... 7.200 04/01/13 3,425,550
1,765 Cape Coral, FL Spl Oblig Rev Wastewtr Impt (FSA
Insd)........................................... 6.375 06/01/12 1,851,114
1,725 Collier Cnty, FL Cap Impt Rev Rfdg (FGIC
Insd)........................................... 5.750 10/01/13 1,731,176
1,000 Dade Cnty, FL Aviation Rev (MBIA Insd).......... 5.750 10/01/12 1,007,020
3,000 Dade Cnty, FL Hsg Fin Auth Single Family Mtg Rev
Ser D Rfdg (FSA Insd)........................... 6.950 12/15/12 3,155,220
2,140 Dade Cnty, FL Sch Brd Ctfs Partn Ser A (MBIA
Insd)........................................... 5.750 05/01/09 2,179,911
1,240 Dade Cnty, FL Seaport (Prerefunded @ 10/01/01)
(AMBAC Insd).................................... 6.250 10/01/10 1,345,239
3,000 Dunedin, FL Util Sys Rev (Prerefunded @
10/01/99)
(FGIC Insd)..................................... 6.000 10/01/14 3,151,200
2,000 Duval Cnty, FL Sch Dist Rfdg (AMBAC Insd)....... 6.300 08/01/08 2,128,660
1,000 Escambia Cnty, FL Pollutn Ctl Rev Champion Intl
Corp Proj....................................... 6.900 08/01/22 1,046,990
5,000 Escambia Cnty, FL Sch Brd Ctfs Partn (FSA
Insd)........................................... 6.375 02/01/12 5,169,200
1,250 Florida Agriculture & Mechanical Univ Rev
Student Apt Fac (MBIA Insd)..................... 6.500 07/01/23 1,310,675
4,000 Florida St Brd Edl Cap Outlay Pub Edl Ser A Rfdg
(Prerefunded @ 06/01/00)........................ * 06/01/12 1,438,840
5,000 Florida St Brd Edl Cap Outlay Pub Edl Ser C
(Prerefunded @ 06/01/02)........................ 6.625 06/01/22 5,543,150
1,810 Florida St Div Bond Fin Dept Genl Svcs Rev Dept
Nat Res Preservation 2000 Ser A (MBIA Insd)..... 6.250 07/01/13 1,880,138
2,775 Florida St Muni Pwr Agy Rev All Requirements Pwr
Supply Proj (AMBAC Insd)........................ 5.100 10/01/25 2,461,314
2,500 Florida St Muni Pwr Agy Rev All Requirements Pwr
Supply Proj (Prerefunded @ 10/01/02) (AMBAC
Insd)........................................... 6.250 10/01/12 2,748,850
4,750 Florida St Muni Pwr Agy Rev Stanton Il Proj
(Prerefunded @ 10/01/02) (AMBAC Insd)........... 6.000 10/01/27 5,157,692
</TABLE>
See Notes to Financial Statements
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 195 Greater Orlando Aviation Auth Orlando FL Arpt
Fac Rev (Prerefunded @ 10/01/98)................ 8.250% 10/01/08 $ 215,861
3,000 Hillsborough Cnty, FL Hosp Auth Hosp Rev Tampa
Genl Hosp Proj Rfdg (FSA Insd).................. 6.375 10/01/13 3,108,390
1,500 Hillsborough Cnty, FL Indl Dev Auth Pollutn Ctl
Rev Tampa Elec Co Proj Ser 92 Rfdg.............. 8.000 05/01/22 1,756,455
2,500 Jacksonville, FL Elec Auth Rev Bulk Pwr Supply
Scherer (Prerefunded @ 10/01/00)................ 6.750 10/01/16 2,751,200
1,000 Jacksonville, FL Hosp Rev Univ Med Cent Inc Proj
(Connie
Lee Insd)....................................... 6.500 02/01/11 1,057,480
2,250 Jacksonville, FL Hosp Rev Univ Med Cent Inc Proj
(Connie
Lee Insd)....................................... 6.600 02/01/21 2,338,808
2,000 Jacksonville, FL Wtr & Swr Dev Rev Jacksonville
Suburban Util................................... 6.750 06/01/22 2,141,940
2,500 Jupiter, FL Wtr Rev Ser A Rfdg (AMBAC Insd)..... 6.250 10/01/18 2,575,250
9,970 Lakeland, FL Elec & Wtr Rev..................... * 10/01/13 3,596,378
2,230 Lakeland, FL Elec & Wtr Rev..................... 5.750 10/01/19 2,158,863
1,000 Martin Cnty, FL Indl Dev Auth Indl Dev Rev
Indiantown Cogeneration Proj A Rfdg............. 7.875 12/15/25 1,121,800
2,500 North Broward, FL Hosp Dist Hosp Rev (MBIA
Insd)........................................... 6.500 01/01/12 2,632,925
2,000 Ocala, FL Util Sys Rev Subser A Rfdg (AMBAC
Insd)........................................... 6.250 10/01/15 2,068,740
1,000 Orange Cnty, FL Cap Impt Rev Rfdg (AMBAC
Insd)........................................... * 10/01/12 384,300
1,000 Orange Cnty, FL Cap Impt Rev Rfdg (AMBAC
Insd)........................................... * 10/01/13 360,720
1,940 Orange Cnty, FL Tourist Dev Tax Rev Ser B (AMBAC
Insd)........................................... 6.500 10/01/19 2,047,166
1,240 Orlando & Orange Cnty Expwy Auth FL Expwy Rev Jr
Lien (Escrowed to Maturity) (FGIC Insd)......... 6.000 07/01/21 1,293,531
2,000 Osceola Cnty, FL Sch Brd Ctfs Partn Ser A
(Prerefunded @ 06/01/02) (AMBAC Insd)........... 6.250 06/01/07 2,191,920
2,535 Oviedo, FL Pub Impt Rev Rfdg (MBIA Insd)........ 6.500 10/01/18 2,675,033
1,000 Palm Beach Cnty, FL Sch Brd Ctfs Partn Ser A
(AMBAC Insd).................................... 6.000 08/01/06 1,062,980
2,750 Palm Beach Cnty, FL Sch Brd Ctfs Partn Ser A
(AMBAC Insd).................................... 6.375 08/01/15 2,878,727
1,000 Pasco Cnty, FL Sch Brd Ctfs Partn Ser A (FSA
Insd)........................................... 6.500 08/01/12 1,040,140
1,000 Pembroke Pines, FL Cons Util Sys Rev (FGIC
Insd)........................................... 6.250 09/01/11 1,047,450
2,390 Polk Cnty, FL Cap Impt Rev Rfdg (MBIA Insd)..... 6.250 12/01/11 2,502,067
110 Polk Cnty, FL Cap Impt Rev Rfdg (Prerefunded @
12/01/02) (MBIA Insd)........................... 6.250 12/01/11 121,143
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 1,100 Saint Cloud, FL Util Rev Rfdg (MBIA Insd)....... 6.375% 08/01/15 $ 1,148,466
1,000 Saint Lucie Cnty, FL Sales Tax Rev (Prerefunded
@ 10/01/02) (FGIC Insd)......................... 6.375 10/01/12 1,106,400
2,000 Saint Lucie Cnty, FL Solid Waste Disp Rev FL
Pwr & Lt Co Proj................................ 6.700 05/01/27 2,091,820
3,000 Saint Petersburg, FL Hlth Fac Auth Rev Allegany
Hlth Sys Ser A (MBIA Insd)...................... 7.000 12/01/15 3,284,610
------------
105,134,917
------------
PUERTO RICO 2.9%
3,000 Puerto Rico Comwlth Hwy & Tran Ser Y (Embedded
Cap) (FSA Insd) (b)............................. 5.730 07/01/21 3,171,780
------------
TOTAL LONG-TERM INVESTMENTS 98.5%
(Cost $100,127,610) (a)..................................................... 108,306,697
OTHER ASSETS IN EXCESS OF LIABILITIES 1.5%................................... 1,604,718
------------
NET ASSETS 100%.............................................................. $109,911,415
============
</TABLE>
*Zero coupon bond
(a) At April 30, 1996, cost for federal income tax purposes is $100,127,610; the
aggregate gross unrealized appreciation is $8,251,416 and the aggregate
gross unrealized depreciation is $72,329, resulting in net unrealized
appreciation of $8,179,087.
(b) An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. The Trust invests in these instruments as a hedge against a rise
in the short-term interest rates which it pays on its preferred shares.
See Notes to Financial Statements
7
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at Market Value (Cost $100,127,610) (Note 1)............... $108,306,697
Cash.................................................................... 456,212
Interest Receivable..................................................... 1,528,389
Unamortized Organizational Expenses (Note 1)............................ 4,520
Other................................................................... 3,119
------------
Total Assets...................................................... 110,298,937
------------
LIABILITIES:
Payables:
Income Distributions - Common and Preferred Shares.................... 100,419
Investment Advisory Fee (Note 2)...................................... 58,608
Administrative Fee (Note 2)........................................... 18,033
Accrued Expenses........................................................ 171,647
Deferred Compensation and Retirement Plans (Note 2)..................... 38,815
------------
Total Liabilities................................................. 387,522
------------
NET ASSETS.............................................................. $109,911,415
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 800
issued with liquidation preference of $50,000 per share) (Note 4)..... $ 40,000,000
------------
Common Shares ($.01 par value with an unlimited number of shares
authorized, 4,137,307 shares issued and outstanding).................. 41,373
Paid in Surplus......................................................... 60,760,628
Net Unrealized Appreciation on Investments.............................. 8,179,087
Accumulated Undistributed Net Investment Income......................... 836,611
Accumulated Net Realized Gain on Investments............................ 93,716
------------
Net Assets Applicable to Common Shares............................ 69,911,415
------------
NET ASSETS.............................................................. $109,911,415
============
NET ASSET VALUE PER COMMON SHARE ($69,911,415 divided
by 4,137,307 shares outstanding)...................................... $ 16.90
============
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest................................................................ $ 3,300,472
-----------
EXPENSES:
Investment Advisory Fee (Note 2)........................................ 363,175
Administrative Fee (Note 2)............................................. 111,746
Preferred Share Maintenance (Note 4).................................... 54,418
Trustees Fees and Expenses (Note 2)..................................... 11,361
Legal (Note 2).......................................................... 5,460
Amortization of Organizational Expenses (Note 1)........................ 2,492
Other................................................................... 80,862
-----------
Total Expenses...................................................... 629,514
-----------
NET INVESTMENT INCOME................................................... $ 2,670,958
===========
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Realized Gain/Loss on Investments:
Proceeds from Sales................................................... $ 3,442,259
Cost of Securities Sold............................................... (3,220,131)
-----------
Net Realized Gain on Investments........................................ 222,128
-----------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period............................................... 9,753,456
End of the Period..................................................... 8,179,087
-----------
Net Unrealized Depreciation on Investments During the Period............ (1,574,369)
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS......................... $(1,352,241)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 1,318,717
===========
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1996
and the Year Ended October 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1996 October 31, 1995
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................ $ 2,670,958 $ 5,379,695
Net Realized Gain/Loss on Investments................ 222,128 (66,628)
Net Unrealized Appreciation/Depreciation on
Investments During the Period...................... (1,574,369) 8,436,829
------------ ------------
Change in Net Assets from Operations................. 1,318,717 13,749,896
------------ ------------
Distributions from Net Investment Income:
Common Shares...................................... (2,006,535) (3,922,044)
Preferred Shares................................... (712,770) (1,552,400)
------------ ------------
Total Distributions.................................. (2,719,305) (5,474,444)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES......................................... (1,400,588) 8,275,452
NET ASSETS:
Beginning of the Period.............................. 111,312,003 103,036,551
------------ -----------
End of the Period (Including undistributed net
investment income of $836,611 and $884,958,
respectively)...................................... $109,911,415 $111,312,003
============ ============
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share of
the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 27, 1992
Six Months Year Ended October 31 (Commencement
Ended --------------------- of Investment
April 30, Operations) to
1996 1995 1994 1993 October 31, 1992
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period (a)..... $17.236 $15.236 $17.963 $14.875 $14.697
------- ------- ------- ------- -------
Net Investment Income........... .645 1.300 1.288 1.294 .596
Net Realized and Unrealized
Gain/Loss on Investments...... (.326) 2.023 (2.731) 3.020 .107
------- ------- ------- ------- -------
Total from Investment
Operations...................... .319 3.323 (1.443) 4.314 .703
------- ------- ------- ------- -------
Less:
Distributions from Net
Investment Income:
Paid to Common Shareholders... .485 .948 .936 .936 .390
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... .172 .375 .257 .287 .135
Distributions from Net Realized
Gain on Investments (Note 1):
Paid to Common Shareholders... -0- -0- .071 .002 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... -0- -0- .020 .001 -0-
------- ------- ------- ------- -------
Total Distributions............... .657 1.323 1.284 1.226 .525
------- ------- ------- ------- -------
Net Asset Value, End of the
Period.......................... $16.898 $17.236 $15.236 $17.963 $14.875
======= ======= ======= ======= =======
Market Price Per Share at End of
the Period...................... $16.250 $15.250 $13.500 $16.750 $14.875
Total Investment Return at
Market Price (b)................ 9.77%* 20.50% (13.92%) 19.30% 1.74%*
Total Return at Net Asset Value
(c)............................. .78%* 19.85% (9.89%) 27.67% 1.65%*
Net Assets at End of the Period
(In millions)................... $ 109.9 $ 111.3 $ 103.0 $ 114.3 $ 101.5
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares.......................... 1.74% 1.79% 1.81% 1.76% 1.72%
Ratio of Expenses to Average Net
Assets.......................... 1.12% 1.12% 1.15% 1.12% 1.21%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)............... 5.41% 5.67% 6.15% 6.01% 5.11%
Portfolio Turnover................ 2.91%* 6.46% 9.55% 8.97% 9.01%*
</TABLE>
(a) Net asset value at March 27, 1992, is adjusted for common and preferred
share offering costs of $.303 per common share.
(b) Total investment return at market price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total return at net asset value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.
(d) Net investment income is adjusted for common share equivalent of
distributions paid to preferred shareholders.
* Non-Annualized
See Notes to Financial Statements
11
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital Trust for Investment Grade Florida Municipals (the
"Trust") is registered as a non-diversified closed-end management investment
company under the Investment Company Act of 1940, as amended. The Trust's
investment objective is to provide a high level of current income exempt from
federal income taxes and Florida State intangibles taxes, consistent with
preservation of capital. The Trust will invest in a portfolio consisting
substantially of Florida municipal obligations rated investment grade at the
time of investment. The Trust commenced investment operations on March 27, 1992.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION--Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of less than 60 days are valued at
amortized cost.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made. At April 30, 1996, there were no
when issued or delayed delivery purchase commitments.
C. INVESTMENT INCOME--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
D. ORGANIZATIONAL EXPENSES--The Trust has reimbursed Van Kampen American Capital
Distributors, Inc. or its affiliates (collectively "VKAC") for costs incurred in
connection with the Trust's organization in the amount of $25,000. These costs
are being amortized on a straight line basis over the 60 month period ending
March 26, 1997. Van Kampen American Capital Investment Advisory Corp. (the
"Adviser") has agreed that in the event any of the initial shares of the Trust
originally purchased by VKAC are redeemed during the amortization period, the
Trust will be reimbursed for any unamortized organizational expenses in the same
proportion as the number of shares redeemed bears to the number of initial
shares held at the time of redemption.
E. FEDERAL INCOME TAXES--It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At October 31, 1995, the Trust had an accumulated capital loss
carryforward for tax purposes of $128,412, of which $61,784 and $66,628 will
expire on October 31, 2002 and 2003, respectively.
F. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays dividends from
net investment income to common shareholders monthly. Net realized gains, if
any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .65% of the average net assets of the Trust. In addition, the Trust
will pay a monthly administrative fee to VKAC, the Trust's Administrator, at an
annual rate of .20% of the average net assets of the Trust. The administrative
services provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.
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<PAGE> 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Trust, of which a trustee of the Trust is an affiliated person.
For the six months ended April 30, 1996, the Trust recognized expenses of
approximately $6,900 representing VKAC's cost of providing accounting and legal
services to the Trust.
Certain officers and trustees of the Trust are also officers and directors
of VKAC. The Trust does not compensate its officers or trustees who are officers
of VKAC.
The Trust has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers of VKAC.
At April 30, 1996, VKAC owned 6,700 common shares of the Trust.
3. INVESTMENT TRANSACTIONS
Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the six months ended April 30, 1996, were $3,655,035 and
$3,220,131, respectively.
4. PREFERRED SHARES
The Trust has outstanding 800 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every 28 days through an
auction process. The rate in effect on April 30, 1996, was 3.499%. During the
six months ended April 30, 1996, the rates ranged from 3.300% to 3.824%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
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FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND
INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Aggressive Growth Fund
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free
Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Intermediate Term Municipal
Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-341-2911 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
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VAN KAMPEN AMERICAN CAPITAL TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
OFFICERS AND TRUSTEES
DON G. POWELL*
Chairman and Trustee
DENNIS J. MCDONNELL*
President and Trustee
DAVID C. ARCH
Trustee
ROD DAMMEYER
Trustee
HOWARD J KERR
Trustee
THEODORE A. MYERS
Trustee
HUGO F. SONNENSCHEIN
Trustee
WAYNE W. WHALEN*
Trustee
PETER W. HEGEL*
Vice President
RONALD A. NYBERG*
Vice President and Secretary
EDWARD C. WOOD, III*
Vice President and Treasurer
SCOTT E. MARTIN*
Assistant Secretary
WESTON B. WETHERELL*
Assistant Secretary
NICHOLAS DALMASO*
Assistant Secretary
JOHN L. SULLIVAN*
Controller
STEVEN M. HILL*
Assistant Treasurer
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
INVESTMENT ADVISORY CORP.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
* "Interested" persons of the Trust, as defined in
the Investment Company Act of 1940.
(C) Van Kampen American Capital Distributors, Inc., 1996
All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.
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